Continental Air sees $10 million forex loss

Continental Airlines said it would take foreign exchange losses of about $10 million in the second quarter from the decline of the euro and the British pound against the U.S. dollar.

In a regulatory filing on Monday, the airline said the losses would be on foreign-denominated cash and money owed to the company.

Continental, which is merging with United Airlines parent UAL Corp , also said domestic advanced bookings for its mainline flights for the next six weeks are down four to five percentage points compared with last year.

But Transatlantic early bookings are up one to two percentage points, while Pacific bookings are up 10 to 11 percentage points.

The company said it has seen a modest boost in business demand and better yields from leisure travelers.

Continental shares were up 2.7 percent, or 67 cents, to $25.44 in morning trade on the New York Stock Exchange, while the broader S&P 500 was up 1 percent.

Continental expects its cargo, mail and other revenue for the second quarter of $385 million to $395 million.